Article ID: | iaor20162317 |
Volume: | 77 |
Issue: | 5 |
Start Page Number: | 914 |
End Page Number: | 942 |
Publication Date: | May 2016 |
Journal: | Automation and Remote Control |
Authors: | Korepanov V, Korgin N |
Keywords: | combinatorial optimization |
This paper designs an allotment mechanism for a limited amount of an infinitely divisible good (resource) among a finite number of agents under transferable utility. The mechanism is efficient in the sense of total agents’ utility maximization. As a solution, we introduce an adaptation of the Groves–Ledyard ‘quadratic government’ that was initially suggested for the problem of public good.